View Zoom Add Page Insert Table Chart Text Shape Media Comment Collaborate 6) Annuities -P44 " 1-(1+r)- PV = P [(1 + r)' - 1] FV =P v--f4++1 r(PV) P= 1 - (1 + r) - FC ne PV = Present Value of Annuity FV Future Value of Annuity P - Payment amount t Number of payments r+Interest rate per payment period books, Ch back Suppose you work for a car dealership that is offering 2.5% financing compounded monthly, with no down-payment. What is the cost-per-thousand for a 3-year car loan? First we must find i. That is 0.025/12 -0.0020833. Then we use 1 (1 + i) PV C: Use row gmented Jensystem quations. x 1 + - - 1 Expert Q FV = Pmt (+9* 3) Step-by- n I will invest $500 per quarter for my retirement at 7.3% compounding quarterly for 32 years. I have a choice of making that payment $500 at the beginning or the end of the quarter (regular annuity of annuity due). In which account will have more money and by how much? Which account will earn the most interest and by how much? commer 23,810 .. D 4 I View Zoom Add Page Insert Table Chart Text Shape Media Comment Collaborate 6) Annuities -P44 " 1-(1+r)- PV = P [(1 + r)' - 1] FV =P v--f4++1 r(PV) P= 1 - (1 + r) - FC ne PV = Present Value of Annuity FV Future Value of Annuity P - Payment amount t Number of payments r+Interest rate per payment period books, Ch back Suppose you work for a car dealership that is offering 2.5% financing compounded monthly, with no down-payment. What is the cost-per-thousand for a 3-year car loan? First we must find i. That is 0.025/12 -0.0020833. Then we use 1 (1 + i) PV C: Use row gmented Jensystem quations. x 1 + - - 1 Expert Q FV = Pmt (+9* 3) Step-by- n I will invest $500 per quarter for my retirement at 7.3% compounding quarterly for 32 years. I have a choice of making that payment $500 at the beginning or the end of the quarter (regular annuity of annuity due). In which account will have more money and by how much? Which account will earn the most interest and by how much? commer 23,810 .. D 4